The article examines the impoverishing effects of out-of-pocket (OOP) healthcare payments in Ghana before introducing the national health insurance scheme. Using data from the Ghana Living Standard Survey 5 (2005/2006) and two poverty lines ($1.25 and $2.50 per capita per day), the study assesses the impact of these payments on poverty at national, urban/rural, and regional levels. The findings reveal significant increases in poverty due to OOP payments, highlighting the necessity of financial risk protection to prevent households, including relatively wealthier ones, from falling into poverty. The study provides baseline indicators for evaluating the effectiveness of Ghana’s national health insurance scheme in mitigating these impoverishing effects.